Forex Analysis

Financial Markets Wrap – Red October

Equity markets collapsed and subsequently recovered in October, with global growth worries widely blamed.

The Euro continues to be undermined by slack Euro zone economic readings,

We peg support at 1.0349 on the monthly charts but we aren’t overly optimistic that support will hold ahead.

Surprisingly the Yen continues to decline on its charts as if more long term fear and

The Dollar has ranged up again overnight and not surprisingly it has also reached up to

A fresh downside breakout overnight on the charts, ongoing weakness in key Canadian

Lingering damage on the Pound charts, ongoing favor toward the Dollar and

Currencies diverged in Asian trading. The JPY was weaker, with USDJPY crossing above 114.00 while,

In the US focus this morning will be on the outcome of the mid-term election.

German bonds rallied in earnest yesterday, with the 10-year yield falling by 5bp and the curve bull-flattening,

The pair closed in NY Tuesday at $1.5998 having recovered off an early day low of $1.5965 to $1.6016,

The pair started this morning’s session at $1.2546, after a $1.2505 to $1.2577 range during the US hours last night.